India, US Hold Trade Talks, Both Sides Describe Them As "Positive"
Talks between the US and India on a bilateral trade agreement, the first since 50% tariffs were imposed by Donald Trump, have been described by the American side as "positive".
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- From: India News Bull
Recent India-US trade tensions have shown signs of easing following last week's developments.
The first bilateral trade discussions between India and the United States since Donald Trump imposed 50% tariffs have concluded with both nations characterizing them as "positive".
"Assistant US Trade Representative Brendan Lynch engaged in a positive meeting in Delhi with his counterpart, Ministry of Commerce and Industry Special Secretary Rajesh Agrawal, on September 16 to discuss next steps in bilateral trade negotiations," stated the US Embassy spokesperson following Tuesday's talks.
The Ministry of Commerce and Industry subsequently released a statement reflecting similar optimism, noting that both countries have agreed to intensify their efforts toward establishing a trade agreement.
"Recognizing the continuing significance of bilateral trade between India and the US, the discussions were positive and forward-looking, encompassing various aspects of the trade deal. Both sides decided to accelerate efforts to achieve an early conclusion of a mutually beneficial Trade Agreement," the ministry announced.
Mr. Lynch and his delegation arrived in India on Monday night for the discussions, which government sources in India described not as the sixth round of trade deal talks, but rather a "precursor" to them.
Relations between the United States and India had noticeably deteriorated after a 25% penalty for India's Russian oil purchases - in addition to existing 25% tariffs - was announced on July 30 and implemented on August 27.
India has labeled these tariffs unfair and expressed confusion about their rationale, pointing out that China is the largest buyer of Russian oil while the European Union purchases the greatest amount of LNG from Russia.
Comments from US President Donald Trump, who has described India's economy as 'dead,' and remarks from advisers like Peter Navarro, who called India's Russian oil purchases 'blood money,' have further heightened tensions.
However, signs of improvement emerged last week when President Trump announced ongoing trade deal negotiations and expressed confidence in a successful outcome.
"I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!" Trump posted on his Truth Social platform.
This was followed by Prime Minister Narendra Modi's response on X, where he emphasized that India and the US are natural partners.
"India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest... I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people," the PM stated.
Since negotiations commenced in February, India and the US had anticipated finalizing the first part of their bilateral trade agreement by fall this year. Five rounds of talks have already taken place, but the sixth round, originally scheduled for August 25-29, was postponed.